China sanctions Hanwha Ocean's US subsidiaries: Why it matters
China just sanctioned the US-based subsidiaries of Hanwha Ocean, a major South Korean shipbuilder.
This move is stirring up global markets and adding more tension to the already rocky US-China trade relationship.
The sanctions are part of a bigger back-and-forth over maritime trade, with both countries recently rolling out special port fees.
South Korea caught in the middle
China's action comes after the US launched an investigation into China's maritime industry for alleged unfair practices—a probe that Hanwha Ocean publicly supported in March.
Now, South Korea finds itself in a tricky spot between its two biggest trading partners.
Meanwhile, China's Vice Finance Minister is heading to Washington for global finance talks, so there might be some room for dialogue soon.